Affidavit Of Consideration For Use By Buyer Template for the United States

When purchasing property in the United States, you'll likely encounter an Affidavit of Consideration for Use by Buyer. This sworn statement declares the actual consideration you paid and serves as a component of your transaction's legal documentation. The affidavit supports transparency in property transfers and helps county authorities and the state division of taxation assess transfer taxes and realty transfer fees based on the true purchase price. If you're preparing the other side of the closing, see the Affidavit of Consideration for Use by Seller.

What is an affidavit of consideration?

An affidavit of consideration is a notarized statement confirming the value exchanged in a property purchase. Consideration usually means the purchase price, but it can also include assumed mortgages, existing liens taken on, and other value given. For a deeper explanation of the underlying concept, read our definition of sale consideration. The buyer's version records the amount from the purchaser's perspective, which recording clerks and tax authorities use to check that the correct fees have been paid.

When do you need this document?

You'll need this affidavit whenever you buy real estate and the transaction involves consideration that must be reported to county recording offices. Most counties require the document when recording deeds so transfer taxes and any realty transfer fee are calculated accurately. You'll typically encounter this requirement during residential home purchases, commercial property acquisitions, and investment or business property transactions. Some counties mandate the affidavit even for nominal consideration, such as family transfers or gifts, to maintain complete public records. Your title company or closing service will usually confirm whether this document is required in your specific jurisdiction.

Key legal considerations

The affidavit creates legal liability for perjury if you provide false information about the consideration amount. You must report the full purchase price, including cash payments, assumed mortgages, liens taken subject to, and other forms of consideration. Underreporting can result in penalties, additional taxes, and potential criminal charges. The document typically requires detailed property descriptions, including legal descriptions and parcel numbers, to ensure proper identification. You must sign the affidavit under oath before a notary public, making it a binding sworn statement. This document becomes part of the public record, so the purchase price is accessible to the public through county records.

What information does the buyer affidavit contain?

A complete buyer affidavit usually captures the following:

• The full name and contact details of the buyer (grantee).
• The name of the seller (grantor) and the property address.
• The legal description and parcel or lot number of the property.
• The total consideration paid, broken down into cash, financing, and any assumed obligations or liens.
• The basis for any exemption from transfer tax or the realty transfer fee, if claimed.
• The notary acknowledgment and the buyer's sworn signature.

How does it differ from the seller affidavit?

Both documents report the same transaction, but they are filed by different parties for different purposes.

Legal requirements in the United States

Federal laws, including Internal Revenue Code provisions and the Foreign Investment in Real Property Tax Act (FIRPTA), may affect your reporting obligations depending on your citizenship status and the property type. Each state has specific transfer tax statutes, and states such as New Jersey administer a realty transfer fee through the Division of Taxation that determines when affidavits of consideration are required and how they must be formatted. County recording offices establish their own forms and filing procedures, so the exact content requirements vary by jurisdiction. Notarization follows state-specific laws, with some states now allowing remote notarization for certain transactions. You must also comply with local zoning regulations and property law requirements that may affect the transaction's validity. Recording statutes in each county set deadlines for filing the affidavit alongside your deed, typically within 30 to 60 days of closing.

How to complete and file the affidavit

Once you've drafted the document, the steps to finish and record it are straightforward:

1. Confirm the exact form your county division of taxation accepts. Many recorders publish the current version on their website, so a quick search of the county recorder's site will show you the right template and any fee schedule.
2. Fill in the buyer and seller details, the property's legal description, and the full consideration. Match every figure to the deed and the settlement statement to avoid a rejected filing.
3. Sign under oath before a notary public. Where remote online notarization is permitted, you can complete verification by video and receive a notarized copy by email.
4. Submit the affidavit with the deed and the applicable recording and transfer fees within your county's deadline.

Keep a copy for your records. The recorded affidavit and the consideration it reports stay accessible through county records, so accuracy at filing protects you if the figures are ever checked. GenieAI drafts the buyer affidavit ready to sign, and you retain the right to edit any clause before it's finalized.